If I am being sued by a credit company, what are my options?
Question Details:
I have a court date in May. I am being sued for $5500. I don't dispute that I owe a majority of that amount. I just can't afford to pay off that amount right now. What can the court do in a default judgement?Should I appear in Court even though I don't have a defense other than can't affort to pay right now?
Not my field of expertise, but I do recall reading an article a few months back that in these cases the credit card company may be required to produce the original signed agreement before they can take judgment. Again, this is not my field of expertise, but no harm in showing up and demanding a copy of the agreement.
Yes, you should always go to court--you want to make the judge aware that if you can't pay, it is because of hardship, not because of an unwillingnesss to pay. That may temper what remedies, or means to collect payment, he or she would allow for the creditor, and may cause the judge to "encourage" (judges can "encourage" rather strongly) the creditor to work out some payment plan with you that you can live and work with. It's not a guarantee that this will happen, but if you show up, it at least might; if you don't show up, there is no one to speak on your behalf.
What can be done with a judgment: the creditor could garnish (or take part of) your wages; put a lien on property (such as a house); force a sale of some property to pay the debt; or just hold onto the judgment and attempt to enforce it later, when you have more in the way of income or assets.
